JEDDAH, 21 January 2006 — Aldrees Petroleum & Transport Services Company (APTSCO) is set to float 1.2 million of its 4 million outstanding shares, or 30 percent of its capital, in the Saudi stock market today. This is the first initial public offering (IPO) of a Saudi company so far this year. On Dec. 13, 2005, the Saudi Capital Market Authority (CMA) approved the offering of 30 percent of outstanding shares of APTSCO, with the subscription period between Jan. 21 to Jan.30. The IPO price of SR185 per share reflects a premium of SR135 over par value of SR50 per share.
Chairman of APTSCO, Hamad ibn Mohammed Aldrees said that his company chose HSBC Saudi Arabia Limited as its financial adviser and the Saudi British Bank (SABB) as the lead manager of the IPO. Beside SABB, the IPO co-managers are Saudi Hollandi Bank, SAMBA Financial Group and the National Commercial Bank.
Aldrees was legally constituted as a partnership in 1962 and was amended in June 2002 as a limited liability company. In 2004, the non-petroleum and transport operations were spun-off into another company and the name was changed to Aldrees Petroleum & Transport Services Co. Ltd. In early 2005, a third division was opened — Super 2 which will manage the operation of coffee & cake shops and car wash & car detailing centers operating within the confines of the existing gas station network of the company.
